Wall Street broker Benchmark remains bullish on Strategy (MSTR) despite the stock's recent struggles, arguing that its bitcoin-linked perpetual preferred shares give it something no other digital asset treasury can match: permanent capital.
The broker reaffirmed its Strategy buy rating and $705 price target in the Thursday report. The stock was 2% lower in early trading, around $324.
In an investor meeting hosted by Benchmark this week, Executive Chairman Michael Saylor outlined how these instruments strengthen the company’s strategy.
While other firms race to replicate Strategy’s playbook, the company’s 640,031 BTC treasury, more than twelve times the next-largest corporate holder, remains unrivaled, analyst Mark Palmer said.
Its real edge, Palmer said, is in the structure of its perpetual preferred shares. These remove refinancing risk tied to bitcoin’s price swings, giving the company a stable capital base without diluting common equity.
Saylor framed the strategy as turning bitcoin into the foundation for a new fixed income market, much as mortgage-backed securities transformed real estate, the report noted. Investors are buying in: the STRC offering in July raised $2.52 billion, the largest U.S. IPO this year.
Benchmark sees bitcoin-linked fixed income evolving into a multi-hundred-billion-dollar market, with Strategy as its architect.
The broker's price target reflects projected bitcoin value, a 10x multiple on expected gains, and the company’s software business outlook through 2026.
Read more: Strategy Q3 Bitcoin Gains Were $3.9B; No Weekly Buys for First Time Since April
